The Competition and Markets Authority (CMA) recently published further detail on its views on the law in relation to cancellations and refunds during the pandemic. It remains their view that a consumer will generally be entitled to a refund when they have paid money in advance for services or goods that cannot be provided because of the coronavirus pandemic.
Given the evolving situation, the CMA has provided more detail on issues such as the difference between lockdown laws and government guidance, and their impact on cancellations and refunds.
For example, if contracts are partially affected by lockdown laws then, depending on the circumstances and the scale of the impact, consumers may be entitled to a refund or a price reduction.
Additionally, the government has issued guidance in place of, or in addition to, lockdown laws. As these are guidance and not law, whether a consumer is entitled to a refund will vary according to the specific circumstances.
For example, if a package holiday is cancelled in light of Foreign and Commonwealth Office advice against travel to the relevant country, there are specific protections which mean that consumers should be entitled to a full refund.
In other situations, it will not always be the case that a full refund is due because government guidance does not create legal restrictions and will not necessarily mean that a contract cannot be performed.
The CMA has also written to certain package travel companies involved in group trips to explain its view on when customers should be offered a refund.
This follows complaints about some package travel organisers advising customers that they are not entitled to a refund as their contract was between the company and a group, such as a school, rather than made directly with the customer. It is the CMA’s view that the Package Travel Regulations apply to these group travel packages, and that individual customers should be entitled to a refund if they have paid money in advance for a group trip that is cancelled because of the pandemic.
The CMA’s statement on consumer protection law, setting out its views, is designed to help consumers understand their rights and to help businesses treat their customers fairly. Ultimately only a court can decide how the law applies in each circumstance.
Making Tax Digital (MTD) is a UK government plan to make tax simpler. It’s all about using digital tools to...
The events and entertainment industry is fast-paced, diverse, and financially complex. From music festivals to trade shows and celebrity agencies...
The trading allowance 2027 rules lift the tax-free limit for side hustle income from £1,000 to £3,000, starting on 6...
Electronic invoicing (e-invoicing) is moving from a digital option to a legal requirement in the UK. Following extensive consultation with...
The UK’s Autumn Budget 2025 introduced a major tax change for the private‑hire sector. Since 2 January 2026, large ride‑hailing...
Maintaining accurate and complete records is not only good business practice but also a legal requirement for UK businesses. Following...
A company director preparing to sell a business may face different tax decisions following the Autumn Budget 2026. Meanwhile, sole...
If you’ve missed an MTD quarterly update and are unsure what to do next, the first step is to check...
You need to register for VAT when your taxable turnover goes over £90,000 in any rolling 12-month period, or when...
UK-based sellers trading on Amazon, eBay, Etsy and similar platforms could soon see a very different VAT system. The government...